tv [untitled] August 1, 2012 6:30am-7:00am PDT
don't -- cultivation of individuals seeking to improve the lives of communities across this country and whereas this story has to matter 60,000 members worldwide who in furtherance of their vision of service to all humankind have contributed over 1.3 million hours of service to communities in need and have played an important role in developing and guiding young woman through higher education and continuing to engage this woman as they progress through their lives and contribute to their communities and whereas at the cabot -- alpha kappa alpha sorority has an international conference held this week and has recognized this city as the golden gateway to external service using san francisco as a backdrop as they challenge their members to rise to new levels of leadership and service, be it resolved that the san francisco board of supervisors recognize aflac
called the alpha -- alpha kappa alpha and commence their selection of san francisco as the setting to grow and grow these values and therefore be it further resolved that the san francisco board of supervisors declared july 24 through july 27 . this is co-sponsored by supervisor malia cohen. president chiu: supervisor has made a resolution. is there a second? do you have additional comments? supervisor cohen: i want to say thank you to supervisor avalos for bringing this forward and i would like to extend a greeting to the lovely ladies of aka, welcoming them to our great
city. president to i would like to be added as a co-sponsor. is there any public comment? >> there is. i would like to remind you that i was visiting [unintelligible] and i noticed a lot of black women in town. last time i seen one he was from kentucky. when they said rosa parks and coretta martin was aka -- i was so happy they were here. they're celebrating 108 years. i was pink before britney spears and the aka is green, too. [unintelligible]
our pink healthy inside, that goes togther. go down there and say something nice to these beautiful woman in pink and green. the woman on the building -- it was a sign during the gold rush, there was no woman here. there were 90,000 men and two years later there were 45,000. that is when san francisco became politics and theater. the w hotels [unintelligible] that has they took the rainbow flags down this time. women should always have the right to live here with their family. i am so glad that we had this many, 10,000 black women and the deltas was always there for
aids. ak is here to help the woman in the south get through this aids crisis. thank you for being in the city. president chiu: are there -- is there other public comment? >> it is brilliant to celebrate people of all races or all sexual orientation. it is also the education that makes the difference, always the education. there are now elected officials in the united states who have overcome difficulties. we have one state now that has 54% of its money going toward education. education is the means by which we can protect people. protection is our obligation. as a right. i should be able to be free.
i should be able to housed. i should be able to have lots of things. when you travel people because of their color or because of their sexual orientation, it is a crime against the city and the humanity. i beg you to help me, a victim of persecution based on these things. i think black is beautiful, it is time to celebrate every culture and every race and every sexual orientation and have equality and justice in the city. please include us all. president chiu: thank you. >> we need to include people in being able to be part of this country. i have ideas to make that happen. thank you. president chiu: thank you. next speaker.
>> i have driven all the way up from san jose. is there any way you could cut me some slack to do the general public comment? president chiu: i am sorry. if you wish to make public comment related to this item you are more than welcome to do that. thank you. are there other members of the public who wish to speak on this resolution? public comment is closed. can we adopt this resolution same house, same call? this resolution is adopted. i think you called the business tax items? >> items 20 and 21 are before the board for consideration. president chiu: why don't we go back to items 20 and 21. supervisor avalos: thank you. the suspense was killing me getting to this point today. we had something written but it did not quite have every dot and
period. thanks to the tax team for your incredible work in bringing this together today. this is renewing our business tax in san francisco. i would call it a watershed moment that we are moving from a payroll tax to a gross receipts tax. something that has been contemplated for many years, something i have been eagerly working on for many years as well. i met david chiu in 1997 when he was a small business commissioner. we have a tax system right now that currently taxes but the number of employees in company might have and how much they make. and clearly that type of tax
could be a disincentive for is a disincentive on hiring new workers in our economy. the gross receipts tax will open the door to a fair tax system that is going to tax revenue instead of a number of workers we have. the measure we have, we have an agreement with the mayor's office. i have introduced a measure with fellow colleagues. supervisor kim, supervisor mar, supervisor campos, and supervisor olague. most of us have co-sponsored. i want to thank you for your co- sponsorship. we have an amendment that would raise revenue in new revenue coming from business registration fees that will be indexed to the consumer price index and i will -- i am excited about revenue generating measure that was the impetus for coming forward with a second measure in the hopes we could
come together as a city and we have just that based on the breadth of interest. not only changing the payroll tax by bringing in new revenue that can meet our needs for infrastructure, for services, making sure as our economy is growing that we can meet the increased demand in our city to be able to make sure that we are reaching workers, getting them to work, making sure they have services for education, parks, or for making sure the roads are in good repair. we will have a process of determining how we would determine new revenue. the mayor has concerns. he has -- about what we would use new revenue for. paving our streets is a big part of it. that is a concern in my district trade we can come to an agreement about that.
this measure has a lot of great work that was done by the comptroller's office. they worked in a dynamic process with business groups in san francisco. we have a schedule of six different business sectors that are going to be addressed in this measure and there process was dynamic and iterative. businesses had a lot of input about how they would be able to adjust the rates that would apply to them. it is significant way and have made adjustments on our measures last week. we will have mr. rosenfield back me up on some of the changes, i have a list of the main changes we have had. these include rate reductions for retailers, wholesalers, and
other services. real estate administrative offices, especially when it comes to retail wholesalers and neighborhood retailers. we are seeing their rates will be a lot fairer than what was proposed and that takes into account a lot of the effort around business and retail selling products unnecessarily high profit margins in that sector. we have rate increases for information, restaurants, manufacturing, financial services, business services, and insurance, that is part of the amendment. we have an inclusion of consumer price index adjustment for small businesses at the exemption level. this measure but i am excited about is it exempts small businesses that have revenue at $1 million of that would be applying cpi so elaris that -- so their prices as our economy grows and making sure we are including businesses in that exemption as our economy grows.
we have changes to their registration fees and revenue targets. $25.50 million is a revenue target with cpi. a new and lower registration fee for retailers and wholesalers which i believe is a fair -- we're looking at their part -- profit margins. the inclusion of the consumer price adjustment on registration fees, i will pass this onto ben rosenfield to talk about the adjustments to this measure. i want to thank the community labor coalition that came together to support the revenue generating measure that we have before us. i want to thank the business groups in san francisco and the mayor's office for the great work of bringing them together and bringing the adjustments we proposed to this measure that has gained their acceptance and work in a flexible way that we
can move forward that will raise revenue in the city. a want to thank you for your flexibility. i want to thank jobs with justice, san francisco rising, the council of community housing organizations. this measure will complementary -- be complementary with our housing trust fund. part of the revenue that will be generated will be looking at ensuring we have a steady stream of funding for the housing trust fund. i want to thank supervisor or president david chiu for his work on this. our first discussion has -- as supervisors, changing the business tax structure came after the 2009 budget and we worked together with the controllers and mayor's office at how we would get this done. there was a lot of doubt we would be able to come up with that agreement and i think that is based on the great work and the collaboration in city hall that we were able to come to this agreement here today and
colleagues, i will make a motion to table my item and to move this amendment as a whole and that would trigger an automatic continuance to next week to hear this item. i am proud and honored to introduce this and i want to thank my co-sponsors, most of whom have come on board with this measure, supervisor kim, supervisor olague, supervisor mar 4 co-sponsors of of this measure as well. this is a great way to grow the economy and make sure we are meeting our need for government services to support the economy as well. supervisor mar: did you what the controller to speak before we turn it over to other colleagues? >supervisor avalos: that would be great. if you want to share the things
that we have missed. >> good afternoon. supervisor avalos touched on the key points in the amendment that is before you. changes to the gross receipts tax rates and the changes to the registration fees and revenue targets. there are more technical amendments that do a number of things. the measure now to the men that contains an annual reporting requirement for a five-year period from the treasure and city economist running implementation. secondly, there is further clarification of what constitutes non-taxable receipts for certain types of financial service income. third, there is further clarification of treatment of past [unintelligible] for purposes of the tax. there are final adjustments to the phase in and phase out formulas in the legislation. lastly, this minor language and
definition changes throughout the ordinances. that provides a high-level summary of the amendment that is before you. president chiu: thank you. i want to join supervisor avalos and mayor lee in thanking all the stakeholders that have come together for this business tax reform that has been literally a decade in the making. the reform that will incent job creation and economic development. we did meet in 2006 working together for a -- to think about how we would bring about reform like this. this is at a time when i served on our small business commission and as we knell for the better part of the last decade, the business community has asked us to reform the tax system that is only in the san francisco system that asks 10% of our businesses to shoulder the burden of this
particular tax. this is an item that i campaigned on in 2008. i want to thank the comptroller's office in 2010 for working with me to promote an initial cut at business tax reform and appreciate the work that has been done. it has been six months since we asked our city economist and your staff to work with us to go through countless iterations of what we have arrived at. hundreds of meetings with the business community. in addition to thanking the stakeholders that supervisor avalos had thanked from the progress of revenue coalition. i want to thank the various leaders within the business community and the representatives of dozens and dozens and dozens of companies that have worked with us to really find to and the legislation that we have in front of us and i want to thank everyone for keeping their eye on the prize. i know there are some among us
who would have preferred less revenue to be in this measure. others would have preferred more. i want to thank all sides to join together on the reform measure that i think is a compromise that reflects the best sense of that work. and i appreciate that the four revenue measures will be consolidated into one measure. i ask for support, particularly in reflection of the work that this represents over truly a decade of discussions and ask for your support. supervisor kim: but want to thank the time to thank -- i want to take the time to thank president to and the mayor's office to -- chiu anmdd the mayor's office for working together. many of us have been talking about this for years. i remember when i first started hearing about this issue in
2003. in that mayoral campaign. the conversation about how we tax our businesses, ask the businesses to invest back in the city and whether payroll tax is the best way to do that. receipts is a much better and stronger model in terms of as a method of asking our businesses to invest back in the city. we will be generating revenue from this measure. there are a number of reasons that justify that. our need for infrastructure, whether it is open space where schools or public safety and supporting our small businesses as well. we're hoping that revenue will go toward building a much stronger sense francisco. the housing trust fund and gross receipts tax measure are peas in a pot and i see them as being key pieces in living together. we will have a wide coalition
supporting both of these measures and i am excited and proud to be campaigning for these measures. $13 million of this gross receipts tax will be going toward affordable housing and also homeownership loans for families making 120% of ami and below. the housing trust fund was [unintelligible] in order to gain support for additional revenue for affordable housing and that will be carried through by the gross receipts tax measure. these measures and the rec and park bond complete its strong balance for san francisco and i hope our city will pass all three. thank you. supervisor campos: i do want to thank the members of this board who have been working on this for quite some time. in particular, president chiu
and supervisor avalos and mayor lee. i want to thank the controller who has spent a lot of time with his staff. i think is a positive thing whenever the city elected family to use the term that mayor lee uses from time to time, comes together. as i indicated in the prior item involving affordable housing trust fund, i certainly do not want to be in a position where we let the perfect be the enemy of the dead. but i do believe that we have to ask certain questions whenever a proposal of this magnitude comes forward. this is probably one of the most important votes will have. as a board of supervisors. there are a couple of questions that raise questions for me. in terms of process, it is a good idea any time a vote of
this magnitude takes placethis o that we have of awful and in- depth analysis by the budget and legislative analysts. i think that we have always benefited from this separate, additional review. my understanding is that there is not an analysis by the budget -- and i know that we will not be voting on this today. mr. rose will have some information on what this very significant proposal means in terms of the changes that this entails. i support the idea of moving away from the payroll system. i think that this this incentivizes the job creation and i am not certain what i will do with this proposal.
i know that a lot of work went into this. i am grateful that we have some time before the final vote before the proposal is taken, when this final vote comes before the board, that i can get to a place where i am is supportive of this matter. when i added to the proposal for mr. avalos, i believe this proposal that was put forward by the supervisor is a modest proposal, and in addition to meeting the level of funding that was put forward.
the approach is to have to measures, for the gross receipts and another that creates a property transfer tax to pay for affordable housing. i remain concerned that and we have the measure that tries to deal with two problems, the solution does not do enough for by the row of them. if you look at the numbers from where we were when the litigation happened, as a result of that litigation, the city lost $25 million per year beginning in 2000. if your account for inflation and adjust the numbers, for us to get to a place where we make the city come back to where we were, we would talk about injecting into the system $33 million worth of revenue.
this proposal would bring in 28.5 million and the affordable housing measure is approved and all of us who are supporting this -- you are talking about 13 million going to affordable housing. in reality only thing that would remain is about $15 million that would remain for the general fund to be used by the city. this is important to the staff and i think that this is a good thing but i wonder if this is enough. i do hear the words that president chu said in his comments. with the proposal of this magnitude you will not have the opportunity to change this for some time so you want to make sure that this is done right.
i look forward to engaging in a discussion to learn more about the specifics of this proposal. i appreciate the threshold of $1 million, this is a good thing for small businesses but i have some concerns about some of the fees that are included in what is being proposed. i like by comparison with supervisor at the lows, where he was trying to do with this proposal to correctly charge smaller businesses last money than fees than the current proposal. we have to make sure that we do everything that we can to extend the revenue so we don't place to hide a burden on small businesses, and i appreciate the threshold, and comparing these
proposals, and comparing the proposal before us, the original proposal that a better job with these concerns for small business. i want to have a better understanding of how this will impact individual industries. today there was a report based on what the chief economist has indicated, that some industries, as a result of this will be paying less money in taxes. i don't know if this is the case -- if this is accurate, but i would like a better understanding of that. restaurants will see a 20% reduction in the taxes that they pay, and i don't know that this is a good or bad thing.
i know that in the restaurant industry we have an issue that remains unresolved, the issue that in many restaurants you have businesses charging customers for -- to pay for health care and a lot of the money is being pocketed. this may be the right approach in light of what is happening. and tech companies will be reducing their tax burden by five-20%. i don't know if this is the case but i look forward to hearing more about if the numbers support this. one thing we should do is make certain we have enough revenue to address all of the concerns and the needs that this city has. there are many positive things brought to the city and county
of san francisco, but with the positive has come challenges. one of them is the impact that the tech industry is having the route the city. i will use the mission district, where i can see that the fact that you have a lot of workers coming in, and many of them are doing well financially, it is impacting the cost of living. in a separate discussion it was reported that the average monthly price of an apartment here in san francisco has risen 12.9% since last year, and this is now 2007 hundred 34. the average price of a home in san francisco is $725,000.